Here is my situation. I am not an Australian Residency, I have a house in Moorebank, Sydney, worth $430,000, still carry $200,000 mortage. I have $70,000 cash.
Should I get 2nd house for investing? or is it too risky? or should I wait untill get my PR?
Another question is: Most of my money is in overseas, can I get the loan first, then quite my job to keep my income really low, let's say lower than $18,200 annually, which is tax free. whenever I need money, I transfer from overseas. will I get any tax problem on this.
Thanks in advance
Probably not tax problems but serviceability problems for your loan – you may have to declare any change in circumstances to your bank/financier.
Thank you, Scott:
So, After I got the loan, and bought the house, then I told my bank I quit the job, but I still pay every money, what will they do?
Another issue you need to consider as a temporary resident, is that you can be forced to sell the property in the event that you are unsuccessful in obtaining permanent residence, or a visa extension, and are thereby forced to leave the country. I went through all this about a year ago with my partner, who has a temporary visa, and this is the advise we received from the Foreign Investment Review Board (FIRB).
I recommend you to get a permanent residency first and then consider investing in property. Immigration services can deny you a permanent residency card and then you will be forced to leave.
OK, thank you guys.
Hi Lukelee
Taking it back a step.
What are you aiming to achieve from property investing?
When taking out a loan, you'll be asked if you anticipate any changes to your future financial situation – which quitting your job would fall under.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Why the hell do you want to quit your job, can you survive on 18k a year? Your home loan repayments must be around 14k a year, before bills? Do you have a car?
How will you quit your job but still earn 18k, just work part time?
Are you refinancing ppor to buy investment property or using the 70k cash? Is that the money you talk about overseas or is there more stashed abroad?
I don’t think buying an investment property is too risky as long as you research first but I wouldn’t quit my job so I could keep my income below the minimum tax threshold unless you’ve got so much money stashed abroad you can survive on it. Pretty sure there are no tax implications for living off savings, you’d just get taxed on interest you earn from it.
If that is the case, might be worth paying off your ppor first before you quit working?
Thank you, gazza: just talked with my accountant, that's not a good idea.
Thinking about it do you have an offset facility on your home loan should probably put the 70k in there to reduce the interest, will still be accessible when you need it?
Is your house in Moorebank a PPOR or IP? Also what areas are you looking at purchasing?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi, Sorry, I am a newb, what is PPOR or IP?
IP = Investment Property? My one is not.
Primary Place of Residence (home you live in) and yes IP is investment property.
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
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